By Aditya Raghunath
Investing.com -- Shares of Poonawalla Fincorp Ltd (NS: POON ), erstwhile Magma Fincorp, have hit the lower circuit of 5% for the second day in a row, and are trading at Rs 163.35 as of this report.
The main reason behind this is the investigation by the Securities and Exchange Board of India (SEBI) on its former Managing Director Abhay Bhutada. Bhutada resigned a day after Sebi barred him from trading in securities for insider trading in Magma Fincorp shares before its acquisition by the Poonawalla Group.
Seven people, apart from Bhutada, have been barred from trading and their bank accounts have been impounded to the tune of Rs 13.8 crore.
Bhutada has denied the allegations and claims that he has not received any financial benefit from the deal or entities mentioned in the transactions. “I have not shared any unpublished price sensitive information (UPSI) directly or indirectly to the entities mentioned in the order except the official discussion with entity no 2 who was working as an advisor for the acquisition transaction. I have not received any kind of financial benefit directly or indirectly from the entities mentioned in the order,” he said. He added that he will seek legal recourse.
Group CEO Vijay Deshwal is likely to continue running the company. From January 1 to September 15, Poonawalla Fincorp gained over 343%.
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again it's 180 sirLike 0
He was begging for funds, from where did he get money to acquire 60% in Magma Fincorp for Rs 3,456-crore? Thanks to your Govt!Like 0
Once again a shoddy action by the SEBI by leaving out the Chairman of then Magma and this new avatar. He should be barred too!Like 0